Paper #750

Title:

Strike outcomes and wage settlements in Spain

Author:

Sergi Jiménez-Martín

Date:

April 2004

Abstract:

This paper analyzes collective bargaining using Spanish firm level data. Central to the analysis are the joint determination of wage and strike outcomes in a dynamic framework and the possibility of segregate wage equation for strike and non-strike outcomes. Conditional to strikes taking place, we confirm a negative relationship between strike duration and wage changes in a dynamic context. Furthermore, we find selection in wage equations induced by the strike outcome. In this sense, the possibility of wage determination processes being different in strike and non-strike samples is not rejected by the data. In particular, wage dynamics are of opposite sing in both strike and non-strike equations. Finally, we find evidence of a 0.33 percentage points wage change strike premium.

Keywords:

Wage setting, strike, collective bargaining, panel data, selection

JEL codes:

J52, C33, C35

Area of Research:

Labour, Public, Development and Health Economics / Statistics, Econometrics and Quantitative Methods

Published in:

Labour, 20 (4), 673-698 (2006)

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